Indonesia-US Partnership on Critical Minerals

Expected Boost to Bilateral Trade

The partnership between Indonesia and the US on critical minerals is expected to have a significant impact on bilateral trade. According to estimates, the removal of tariffs on Indonesian critical mineral exports to the US could lead to an increase in exports of up to US$ 9.4 billion in 2026 ¹

. This would not only benefit Indonesia's economy but also contribute to the growth of the global critical minerals market.

Tariff Removal and Increased Imports

As part of the partnership, Indonesia has committed to removing tariffs on around 99% of US products ¹

. This move is expected to lead to an increase in imports from the US, particularly in high-value sectors such as technology and manufacturing. The reduction or elimination of tariffs on US products would make them more competitive in the Indonesian market, potentially leading to an increase in imports of up to US$ 13.5 billion ¹

Source 1

https://nasional.kontan.co.id/news/akses-mineral-kritis-ri-ke-as-berpotensi-tambah-ekspor-us-94-miliar-pada-2026

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Foreign Direct Investment (FDI) Opportunities

The partnership also presents opportunities for Foreign Direct Investment (FDI) in Indonesia's critical minerals sector. According to Myrdal Gunarto, Global Market Economist at Maybank Indonesia, the US could invest in Indonesia's critical minerals sector through FDI, allowing US companies to explore and process minerals in Indonesia while following local regulations ²

. This would not only benefit the US but also contribute to the development of Indonesia's critical minerals sector.